Bawumia and Centralised Gold Processing Centres: Ghana’s Path to Formalising ASM

Introduction

In early January 2026, the World Gold Council reaffirmed Ghana’s pivotal role in the global effort to formalise artisanal and small-scale mining (ASM). Their visit highlighted the urgent need for structured, traceable, and environmentally responsible interventions within the sector. Central to this discussion was the proposal for centralised, common-user gold processing centres—a concept championed by Dr. Mahamudu Bawumia well before it gained international traction. This article examines the alignment between Bawumia’s vision, international best practices, and Ghana’s opportunity to lead the transformation of ASM.

Key Points

Background

The Global Context of ASM Formalisation

Artisanal and small-scale mining (ASM) accounts for approximately 20% of global gold production and supports the livelihoods of over 100 million people worldwide. However, the sector faces significant challenges, including environmental degradation, unsafe working conditions, and lack of traceability. International bodies like the World Gold Council and the London Bullion Market Association (LBMA) have prioritised formalising ASM to ensure responsible sourcing and sustainable development.

Ghana’s ASM Sector: Challenges and Opportunities

Ghana is Africa’s largest gold producer, with ASM contributing significantly to national output. Despite its economic importance, the sector has been plagued by illegal mining (galamsey), mercury pollution, and land degradation. The government’s efforts to curb these issues have often been reactive rather than systemic. Centralised gold processing centres offer a proactive solution by providing legal, efficient, and environmentally sound alternatives to informal practices.

Dr. Bawumia’s Vision: A Timeline

• November 2023: Dr. Bawumia facilitated executive engagements with Dynacor, a Canadian company operating centralised processing plants in Peru and referenced in LBMA and World Gold Council guidelines.
• 2024 Manifesto: Page 197 outlined a commitment to deliver structured ASM processing infrastructure as part of a comprehensive mining reform agenda.
• January 2026: World Gold Council’s visit validated the relevance and timeliness of Bawumia’s proposals.

Analysis

The Role of Centralised Processing Centres

Centralised, common-user gold processing centres are facilities where ASM operators can bring their ore for efficient, environmentally responsible processing. These centres eliminate the need for mercury use, improve gold recovery rates, and enable traceability from mine to market. They also facilitate data collection, tax compliance, and regulatory oversight.

Why Dynacor’s Model Matters

Dynacor’s Veta Dorada plant in Peru processes over 1,000 tons of ASM ore daily, demonstrating the scalability and effectiveness of centralised models. The company’s adherence to LBMA’s Responsible Gold Guidance and World Gold Council’s standards makes it a benchmark for similar initiatives in Ghana.

Alignment with International Standards

The World Gold Council’s endorsement of centralised processing aligns with global frameworks such as the OECD Due Diligence Guidance for Responsible Supply Chains. Ghana’s adoption of this model would enhance its reputation as a source of responsibly mined gold, attracting ethical investors and premium market access.

Economic and Environmental Implications

Formalising ASM through centralised centres can generate significant economic benefits, including increased tax revenue, job creation, and value addition. Environmentally, it reduces mercury emissions, prevents deforestation, and promotes land reclamation. Socially, it improves working conditions and supports community development.

Practical Advice

For Policymakers

• Legislative Framework: Enact laws that mandate ASM operators to use certified processing centres.
• Incentives: Provide tax breaks and subsidies for operators transitioning to formal channels.
• Enforcement: Strengthen monitoring and penalties for non-compliance.

For the Private Sector

• Partnerships: Collaborate with international operators like Dynacor to establish processing facilities.
• Technology Transfer: Invest in training and capacity building for local operators.
• Sustainability: Adopt best practices in environmental management and community engagement.

For ASM Operators

• Registration: Register with the Minerals Commission to access formal processing services.
• Training: Participate in programs on responsible mining practices.
• Compliance: Adhere to environmental and safety standards to ensure long-term viability.

FAQ

Conclusion

Dr. Mahamudu Bawumia’s advocacy for centralised gold processing centres represents a forward-thinking approach to formalising Ghana’s ASM sector. His early engagement with international experts like Dynacor and his manifesto commitment demonstrate a clear vision aligned with global best practices. The World Gold Council’s recent visit underscores the relevance and urgency of these reforms. By implementing centralised processing infrastructure, Ghana can transform its ASM sector into a model of sustainability, responsibility, and economic growth. The time for decisive action is now.

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